Qatar sees settlement system complete in May

Abu Dhabi, April 12, 2011

Qatar bourse's new settlement system will not be fully implemented until May, just a month before index complier MSCI's ruling, the chief executive of the country's financial markets said on Tuesday.

Qatar said earlier that it would switch to Delivery Versus Payment (DvP) system on April 11, a key requirement for the country to earn an MSCI emerging market status.

"The full implementation will be in early May," Nasser al Shaibi told Reuters on the sidelines of a conference in Abu Dhabi.

The influential index complier will announce in June whether it will upgrade Qatar and UAE from the 'frontier markets' category, a move that could open up the countries' bourses to multibillion dollar liquidity and drive index fund investments.

Shaibi said Qatar, which has been snubbed twice before by MSCI, is still committed to earning an emerging market status from MSCI.

"Very soon we plan bonds and sukuk for listing. We are also studying introducing a liquidity provider to the market" said Shaibi.

Qatar has so far failed to increase its foreign investment from 25 per cent, which was also one of the key requirements stated by MSCI at its 2010 review.

Upgrading to emerging market status was part of the strategic plan to develop the Qatar market and economy, Shaibi told reporters.

UAE domestic bourses, which are also seeking an upgrade in its status, said it will launch a new Deliver Versus Payment (DvP) system on April 28 to bolster the country's chances. – Reuters